As authorized by the Declaration of Covenants, Conditions and
Restrictions for Walker Ranch (“DCCR”)1, Articles V and VIII, the
Board of Directors (“BoD”) of the Walker Ranch Homeowners Association has
enacted the following RULES & PROCEDURES:

RULES (appear
alphabetically by subject)

Criminal Activity in Walker Ranch

Garbage Collection

Holiday Decorations

Nuisance Issues

Pet Waste

Street Parking

PROCEDURES (appear in
the order they were enacted)

I. Procedure
for Communicating Complaints, Violations, and Requests

II. Procedure
for Remedying Violations of DCCR and WRHOA RULES other than those pertaining to
Street Parking

Criminal
Activity in Walker Ranch. Enacted 2004-07-05. Actual and suspected criminal activity should be
reported IMMEDIATELY to the San Antonio Police Department (“SAPD”). The
reporting homeowner is encouraged to follow with a report to the WRHOA
management company (“Manager) and to report the action taken by the SAPD, if
known. The Manager will then report the incident, in writing, to the BoD and
both the Safety and Communications Committees for dissemination to WRHOA homeowners.

Garbage
Collection.Enacted 2004-07-05. Except
as modified below, the current City of San Antonio Guidelines2
concerning the collection of garbage shall be followed.

Garbage
shall be placed in approved, closed trash containers, or sealed in cardboard
cartons, or bundled and securely bound. No loose trash and no plastic bags or
paper bags may be placed in front of houses, on the street, or on the sidewalk.

Garbage
shall be placed at the collection location in front of homes no earlier than 10:00
p.m. of the evening before the scheduled garbage collection day. Garbage
containers shall be removed from the collection location no later than 10:00
p.m. on the scheduled garbage collection day. If, for any reason, garbage is
not picked up as scheduled, any uncollected garbage shall be removed from the
collection location until 10:00 p.m. of the evening before the next scheduled
collection date.

Holiday
Decorations.Enacted 2004-07-05. Exterior holiday decorations that are in public view shall be removed
from display within two weeks after the holiday event.

Nuisance
Issues.Enacted 2004-07-05. Complaints
related to nuisance issues, such as barking dogs or
loud music, and not otherwise addressed in the WRHOA RULES, shall be
governed by existing clauses in the DCCR.

Pet Waste.Enacted 2004-07-05. Pet owners shall be responsible for promptly
removing their pet’s waste from (1) another homeowner’s property, (2) any
common area, and (3) the street.

Street
Parking. Enacted 2004-07-05. No vehicle
of any kind, including but not limited to a motor vehicle, a marine craft, a
recreational vehicle, or a travel trailer, may be parked overnight on the
street. Further, no vehicle may be parked in a position that causes a traffic
hazard, impedes use of the street, or causes a nuisance to another resident.
Toward this purpose, no vehicle may be parked (a) within ten feet of an
intersection, a stop sign, or a fire hydrant,
(b) parallel to another car on the opposite side of the street such that traffic
is reduced to a single lane, (c) in front of or alongside another resident's
property without permission of that resident, (d) in a position that hinders
entry or exit of another resident’s driveway, or (e) on a driveway in a
position such that the sidewalk is blocked.

Notwithstanding
the above, residents and their guests may park in front of the property of
other residents, without obtaining their permission, if the need arises during
family functions, parties, and other social events, and provided this parking neither hinders the other residents’ use of their
property nor disturbs the neighborhood.

Residents
and guests may not use the street for regular parking of any vehicle. Parking
on five or more consecutive days is considered regular parking.

Homeowners
shall be responsible for cleaning up leaked fluids and for paying to
repair any damage to the pavement when fluid leaks onto the pavement from their
vehicle or from a vehicle belonging to their guest.

Variances
of the above guidelines may be appropriately granted in individual
circumstances at the discretion of the BoD.

PROCEDURES

I. Procedure
for Communicating Complaints, Violations, and Requests. Enacted
2004-07-05. All homeowner communications
(including complaints, reports of violations, and requests of the Architectural
Control Committee) shall be in writing and directed to the Manager.
Communications shall be mailed, e-mailed, faxed, or hand-delivered. As
appropriate, the Manager either will notify the BoD and/or the appropriate
WRHOA committee or will otherwise process the complaint, violation, or request.
Afterward, the Manager will duly notify the homeowner who originated the
communication.

The
Manager and the BoD will exercise discretion in processing all complaints, violations,
and requests, and will keep confidential both the sources and the subjects of
complaints and violations, when feasible.

II. Procedure
for Remedying Violations of DCCR and WRHOA RULES other than those pertaining to
Street Parking. Enacted 2004-07-05.
The Manager will mail a notice of the violation to the homeowner and will allow
the homeowner thirty days to remedy the violation and notify the Manager, in
writing. If the violation is not remedied within thirty days, the Manager will
mail the homeowner a second notice and state in the notice that (a) the
violation must be remedied within five days, (b) the homeowner will be subject
to fines and other charges, and (c) the homeowner may request a hearing before
the BoD to discuss the violation. If the violation is not remedied within five
days or as a result of a hearing with the BoD, the Manager will mail the
homeowner a third notice and state in the notice that the WRHOA will, as
necessary until the violation is remedied, (1) impose fines and other charges,
(2) suspend the homeowner’s rights, and/or (3) pursue all available legal
remedies. A copy of the third notice will be mailed to the BoD.

III. Procedure for
Remedying Violations of WRHOA RULES pertaining to Street Parking. Enacted
2004-07-05. The number and frequency of
complaints in connection with street parking, coupled with the issue of public
safety, demands a remedy procedure for street parking violations that is more
aggressive than the remedy procedure of other violations.

The
Manager will monitor reports of street parking violations and will consider
that a violation has occurred upon receipt of (a) a single written report that
includes a photograph of the violation OR (b) written reports by two homeowners
within a seven-day period. Reports must contain the (1) date of violation, (2)
make, description, and license number of vehicle, and (3) address where the
violation occurred.

The
Manager will then mail a notice of the violation to the homeowner of the
address where the violation occurred and will encourage the homeowner to comply
with the applicable WRHOA RULE. The notice will include the following fine
schedule that will be imposed if the violation continues:

Street Parking
Violation

Manager Action

Fine Amount

1st Occurrence

Mail homeowner a warning notice to remedy the violation
within three calendar days

No fine

2nd Occurrence

Mail homeowner a second violation notice which includes the
fine amount

$25

3rd Occurrence

Mail homeowner a third violation notice which includes the
fine amount

$50

Further Occurrences

Mail homeowner a notice to cease and desist the violation

$100 each

For
the purpose of scheduling fines, a street parking violation is considered a 1st
Occurrence if the homeowner has had no occurrence of that violation during the
six-month period prior to the violation.

A
copy of any notice of parking violation will be sent to the BoD. The homeowner
may request a hearing with the BoD to discuss the circumstances of the
violation, after which the BoD will decide the validity of the violation.

1The DCCR document, provided for your review before
closing documents were signed, will soon be accessible on the Walker Ranch
website. Until then, a copy can be obtained from the Manager for the cost of
copying.